Posts tagged PV

Home and business owners in New Jersey and other leading solar energy states can look forward to yet another drop in pricing for photovoltaic systems in 2010.

PV systems have been increasing in number as the benefits and incentives become available to home and business owners. However, although the rate of growth has been tremendous over the past ten years, it has been constrained by the shortage of manufacturing capacity for purified polysilicon. This material is what makes up the semiconductor chips in PV systems, and in 2006, for the first time, over 50% of the world’s polysilicon was used to produce solar PV cells.

Supply shortages have forced many manufacturers to develop ways to use polysilicon more efficiently. New technology that does not depend on purified silicon allows thin film cells and amorphous silicon to be used instead, reducing overall costs. Thin film cells were initially not efficient enough to compete with conventional cells, but have been redesigned to make PV panels cheaper to manufacture.

In 2008, polysilicon supply to the solar industry grew by 127% in megawatt terms. The US contributed substantially to this figure; over 43% of the world’s supplies came from the United States.

For New Jersey, where alternative power is becoming the avenue more and more business owners are taking, PV costs continue to drop. Thanks to the reduction in cost for thin cell materials and the generous incentives offered by state and federal agencies, photovoltaic systems can now be installed with small upfront investments, and be completely paid off in short order (recent projections showed that a business installing a 40+ kw system could be free and clear in less than five years.

“The average price for a PV module, excluding installation and other system costs, has dropped from almost $100 per watt in 1975 to less than $4 per watt at the end of 2006. With expanding polysilicon supplies, average PV prices are projected to drop to $2 per watt in 2010.

For thin-film PV alone, production costs are expected to reach $1 per watt in 2010, at which point solar PV will become competitive with coal-fired electricity. With concerns about rising oil prices and climate change spawning political momentum for renewable energy, solar electricity is poised to take a prominent position in the global energy economy.” *

According to GreenTech Media Research, the United States is closing in on the front runner position to head the global solar photovoltaic (PV) marketplace. The US is poised on the brink of growth explosion, and sales are expected to double by 2011.

German solar industry association BSW states that Germany is currently the largest solar PV market worldwide, but the report (titled ‘The United States PV Market Through 2013: Project Economics, Policy, Demand and Strategy’) indicates that the U.S. will sweep past Germany to take first place globally in the field of solar sales and installation.

The reason? US demand for solar has skyrocketed thanks to federal mandates, and is expected to keep growing, with a rise of about 50 percent, from 320 megawatts in 2008 to a projected 1,212 megawatts (1.2 gigawatts) in 2012. There is even the possibility of topping 2 gigawatts by that date if federal, state and regional incentives keep expanding.

California currently holds the title for US solar PV leadership, but rising solar PV demand puts other states (Arizona, New Jersey, New Mexico, New York, Nevada and Massachusetts) in play. These are expected to collectively support 376 megawatts of PV generated electricity by 2012.

The growth is expected to occur primarily in residential and utility-scale sectors. Investors are increasingly willing to support utility-scale solar as a reliable, long-term investment thanks to state renewable portfolio standards, or RPSs. These mandate higher limits of renewable energy in a utility’s generation mix. Utility or power companies unable to comply can make up the deficit by buying credits from residential and commercial owners of PV systems through SREC programs like the one available in New Jersey..

New Jersey offers solar renewable energy credits, or SRECs, for energy produced through PV. These trade in excess of $600 on the market, and cqan be purchased by private investors against rises in future value, or by power companies to help satisfy their alternative energy quotas.

In addition, the grants available to commercial installations make it easier for mom and pop stores to install and run PV systems – the average time to pay off a system is four years, and all SRECs generated after that time are pure profit.

New Jersey business owners can now receive a grant to help defray the cost of purchasing and installing a photovoltaic system, making ‘going green’ even more affordable for even small businesses.

For FYE 2009 and FYE 2010, treasury grants are now available to those who choose to install photovoltaic systems in New Jersey and elsewhere. Formerly, businesses could qualify for a federal tax credit, but a new system has been set up to allow the U.S. Treasury Department to issue grants equal to 30% of the cost of new commercial solar installation projects initiated in the US over the next 2 years.

New Jersey business owners can receive a cash grant through this federal stimulus package. The maximum benefit equals $1,500 per 0.5 kW for qualified fuel cell property; between 10 and 30% of the cost of teh system. Grant applications must be submitted by 10/1/2011. Payment of grant will be made within 60 days of the grant application date or the date property is placed in service, whichever is later.

This is a better system than the original tax credit available, and these grants can still be combined with other incentives and loans available at the federal and state level for photovoltaic installations. PV systems can save New Jersey businesses considerable costs over a five to ten year period, and bring in additional revenue by qualifying for the state’s SREC program.

Visit Arosa Solar to learn more about PV systems and federal grants in place.